Latvia Q2 2007 GDP Growth Rate

Well second quarter GDP certainly hasn't slowed, which is leading to all manner of speculation. As stated in the previous post when looking at inflation, either the package of measures aren't working, or they aren't working quickly enough. The trouble with this rate of GDP growth is that it continues to put pressure on wages and prices, and this will send them to levels which will be very difficult to correct later with a fixed exchange rate.

Below there is a chart showing how the rate of GDP growth has varied (or should I say hardly varied) since the start of 2005.